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Midterm Exam - Bauer College of Business
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... b) keeps down advertising and R&D costs pp. 123-4 c) increases the firm’s cost for product modification d) creates more total sales than differentiated marketing e) puts the company at risk of being supplanted by an entirely new technology 2. Nick Grahmann, our speaker from Champion Technologies (sl ...
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Perfect competition

In economic theory, perfect competition (sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets. Still, buyers and sellers in some auction-type markets, say for commodities or some financial assets, may approximate the concept. As a Pareto efficient allocation of economic resources, perfect competition serves as a natural benchmark against which to contrast other market structures.
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